IDEAS home Printed from https://ideas.repec.org/a/gam/jecomi/v9y2021i4p172-d673212.html
   My bibliography  Save this article

The COVID-19 Pandemic and Its Impacts on Tourism Business in a Developing City: Insight from Vietnam

Author

Listed:
  • Da Van Huynh

    (School of Social Sciences and Humanities, Can Tho University, Can Tho 900000, Vietnam)

  • Thuy Thi Kim Truong

    (School of Social Sciences and Humanities, Can Tho University, Can Tho 900000, Vietnam)

  • Long Hai Duong

    (School of Social Sciences and Humanities, Can Tho University, Can Tho 900000, Vietnam
    Department of Global Hospitality and Tourism, Kyung Hee University, Seoul 02447, Korea)

  • Nhan Trong Nguyen

    (School of Social Sciences and Humanities, Can Tho University, Can Tho 900000, Vietnam)

  • Giang Vu Huong Dao

    (School of Social Sciences and Humanities, Can Tho University, Can Tho 900000, Vietnam)

  • Canh Ngoc Dao

    (School of Social Sciences and Humanities, Can Tho University, Can Tho 900000, Vietnam)

Abstract

The COVID-19 pandemic has generally destroyed the global tourism industry and threatened the recovery of destinations in developing countries facing more challenges from increasingly serious waves of the pandemic. Although many studies have attempted to measure the general impacts of COVID-19, very little research has been conducted to assess its overall impact on specific tourism destinations throughout many waves of the pandemic. This research aims to explore how a tourism economy in a developing country context has been damaged after many waves of COVID-19. A typical emerging city in Vietnam experiencing three waves of the COVID-19 pandemic was selected as a case study. The study recruited 40 representatives of tourism-related organizations for in-depth interviews, while 280 questionnaires were distributed to participants from different tourism organizations. The findings indicate that the majority of tourism businesses in the examined case study seriously suffered from the pandemic, and very few tourism-related enterprises were able to recover after the first wave of infection. Unfortunately, the tourism business sectors were found to be on the brink of bankruptcy or facing permanent shutdown after the third wave. All tourism enterprises generally appeared to experience a sharp drop in the number of customers, tourism revenue, service facilities and exploitation, as well as employee downsizing, but the degree of downturn differed among the examined enterprises. Among the tourism enterprises, travel agencies and the accommodation sector were found to suffer the greatest economic losses compared to other stakeholders. In general, the COVID-19 pandemic’s impact on the tourism business in Vietnam is a big concern, which may require a timely economic policy response and financial scheme to better support local enterprises in coping with the challenges during post-pandemic recovery.

Suggested Citation

  • Da Van Huynh & Thuy Thi Kim Truong & Long Hai Duong & Nhan Trong Nguyen & Giang Vu Huong Dao & Canh Ngoc Dao, 2021. "The COVID-19 Pandemic and Its Impacts on Tourism Business in a Developing City: Insight from Vietnam," Economies, MDPI, vol. 9(4), pages 1-17, November.
  • Handle: RePEc:gam:jecomi:v:9:y:2021:i:4:p:172-:d:673212
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2227-7099/9/4/172/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2227-7099/9/4/172/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Paul J. Gertler & Sebastian Martinez & Patrick Premand & Laura B. Rawlings & Christel M. J. Vermeersch, 2016. "Impact Evaluation in Practice, Second Edition," World Bank Publications - Books, The World Bank Group, number 25030.
    2. Joanna Wieprow & Agnieszka Gawlik, 2021. "The Use of Discriminant Analysis to Assess the Risk of Bankruptcy of Enterprises in Crisis Conditions Using the Example of the Tourism Sector in Poland," Risks, MDPI, vol. 9(4), pages 1-11, April.
    3. Alexander W. Bartik & Marianne Bertrand & Zoe Cullen & Edward L. Glaeser & Michael Luca & Christopher Stanton, 2020. "The impact of COVID-19 on small business outcomes and expectations," Proceedings of the National Academy of Sciences, Proceedings of the National Academy of Sciences, vol. 117(30), pages 17656-17666, July.
    4. Samuel Asumadu Sarkodie & Phebe Asantewaa Owusu, 2021. "Global assessment of environment, health and economic impact of the novel coronavirus (COVID-19)," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(4), pages 5005-5015, April.
    5. Huy Van Nguyen & Minh Van Hoang & An Thi Minh Dao & Hoa L. Nguyen & Tien Van Nguyen & Phuong The Nguyen & Long Quynh Khuong & Phuong Mai Le & Stuart Gilmour, 2020. "An adaptive model of health system organization and responses helped Vietnam to successfully halt the Covid‐19 pandemic: What lessons can be learned from a resource‐constrained country," International Journal of Health Planning and Management, Wiley Blackwell, vol. 35(5), pages 988-992, September.
    6. Dube, Kaitano & Nhamo, Godwell & Chikodzi, David, 2021. "COVID-19 pandemic and prospects for recovery of the global aviation industry," Journal of Air Transport Management, Elsevier, vol. 92(C).
    7. -, 2020. "The effects of the coronavirus disease (COVID-19) pandemic on international trade and logistics," Libros y Documentos Institucionales, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 45878 edited by Eclac.
    8. Rim Krouk & Fernando Almeida, 2021. "Exploring the Impact of COVID-19 in the Sustainability of Airbnb Business Model," Papers 2101.00281, arXiv.org.
    9. Sigala, Marianna, 2020. "Tourism and COVID-19: Impacts and implications for advancing and resetting industry and research," Journal of Business Research, Elsevier, vol. 117(C), pages 312-321.
    10. Chia-Lin Chang & Michael McAleer & Vicente Ramos, 2020. "A Charter for Sustainable Tourism after COVID-19," Sustainability, MDPI, vol. 12(9), pages 1-4, May.
    11. Raquel García & Christian Gayer & Werner Hölzl & Sergio Payo & Andreas Reuter & Klaus Wohlrabe, 2020. "The Impact of the Covid-19 Crisis on European Businesses: Evidence from Surveys in Austria, Germany and Spain," EconPol Policy Brief 31, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Da Van Huynh & Long Hai Duong & Thuy Thi Kim Truong & Nhan Trong Nguyen, 2022. "Destination Responses to COVID-19 Waves: Is “Green Zone” Initiative a Holy Grail for Tourism Recovery?," Sustainability, MDPI, vol. 14(6), pages 1-18, March.
    2. Long Hai Duong & Quyet Dinh Phan & Tung Thanh Nguyen & Da Van Huynh & Thong Tri Truong & Khanh Quoc Duong, 2022. "Understanding Tourists’ Behavioral Intention and Destination Support in Post-pandemic Recovery: The Case of the Vietnamese Domestic Market," Sustainability, MDPI, vol. 14(16), pages 1-17, August.
    3. Ajeigbe Kola Benson & Ganda Fortune, 2022. "Sensitivity analysis of the impact of Covid-19 on corporate sustainability and company performance:Recovery strategy for companies and nations around the world," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 11(3), pages 16-26, April.
    4. Parvaneh Sobhani & Hadi Veisi & Hassan Esmaeilzadeh & Seyed Mohammad Moein Sadeghi & Marina Viorela Marcu & Isabelle D. Wolf, 2022. "Tracing the Impact Pathways of COVID-19 on Tourism and Developing Strategies for Resilience and Adaptation in Iran," Sustainability, MDPI, vol. 14(9), pages 1-21, May.
    5. Md. Abdus Salam & Md. Abdul Halim, 2022. "Post Pandemic Challenges of the Travel Agency Business in Bangladesh," International Journal of Science and Business, IJSAB International, vol. 12(1), pages 70-80.
    6. Batara Surya & Hernita Hernita & Agus Salim & Seri Suriani & Iwan Perwira & Yulia Yulia & Muhlis Ruslan & Kafrawi Yunus, 2022. "Travel-Business Stagnation and SME Business Turbulence in the Tourism Sector in the Era of the COVID-19 Pandemic," Sustainability, MDPI, vol. 14(4), pages 1-37, February.
    7. Da Van Huynh & Long Hai Duong & Nhan Trong Nguyen & Thuy Thi Kim Truong, 2022. "Tourism Vulnerability Amid the Pandemic Crisis: Impacts and Implications for Rebuilding Resilience of a Local Tourism System in Vietnam," Social Sciences, MDPI, vol. 11(10), pages 1-13, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Da Van Huynh & Long Hai Duong & Thuy Thi Kim Truong & Nhan Trong Nguyen, 2022. "Destination Responses to COVID-19 Waves: Is “Green Zone” Initiative a Holy Grail for Tourism Recovery?," Sustainability, MDPI, vol. 14(6), pages 1-18, March.
    2. Parvaneh Sobhani & Hadi Veisi & Hassan Esmaeilzadeh & Seyed Mohammad Moein Sadeghi & Marina Viorela Marcu & Isabelle D. Wolf, 2022. "Tracing the Impact Pathways of COVID-19 on Tourism and Developing Strategies for Resilience and Adaptation in Iran," Sustainability, MDPI, vol. 14(9), pages 1-21, May.
    3. Garaus, Marion & Hudáková, Melánia, 2022. "The impact of the COVID-19 pandemic on tourists’ air travel intentions: The role of perceived health risk and trust in the airline," Journal of Air Transport Management, Elsevier, vol. 103(C).
    4. Anca-Gabriela Turtureanu & Rodica Pripoaie & Carmen-Mihaela Cretu & Carmen-Gabriela Sirbu & Emanuel Ştefan Marinescu & Laurentiu-Gabriel Talaghir & Florentina Chițu, 2022. "A Projection Approach of Tourist Circulation under Conditions of Uncertainty," Sustainability, MDPI, vol. 14(4), pages 1-21, February.
    5. Bianco, Débora & Bueno, Adauto & Godinho Filho, Moacir & Latan, Hengky & Miller Devós Ganga, Gilberto & Frank, Alejandro G. & Chiappetta Jabbour, Charbel Jose, 2023. "The role of Industry 4.0 in developing resilience for manufacturing companies during COVID-19," International Journal of Production Economics, Elsevier, vol. 256(C).
    6. Michał Roman & Arkadiusz Niedziółka & Andrzej Krasnodębski, 2020. "Respondents’ Involvement in Tourist Activities at the Time of the COVID-19 Pandemic," Sustainability, MDPI, vol. 12(22), pages 1-21, November.
    7. Azzeddine Madani & Saad Eddine Boutebal & Hinde Benhamida & Christopher Robin Bryant, 2020. "The Impact of Covid-19 Outbreak on the Tourism Needs of the Algerian Population," Sustainability, MDPI, vol. 12(21), pages 1-11, October.
    8. Foris Diana & Matei Cristina-Alexandra & Foris Tiberiu, 2021. "Exploring Solutions and the Role of GDS Technology in Crossing the Current Pandemic Context in Tourism," European Journal of Tourism, Hospitality and Recreation, Sciendo, vol. 11(1), pages 91-101, December.
    9. Ana Brochado & Paula Rodrigues & Ana Sousa & Ana Pinto Borges & Mónica Veloso & Mónica Gómez-Suárez, 2023. "Resilience and Sustainable Urban Tourism: Understanding Local Communities’ Perceptions after a Crisis," Sustainability, MDPI, vol. 15(18), pages 1-21, September.
    10. Jong, Meng-Chang & Soh, Ann-Ni, 2021. "Responsible Recovery from COVID-19: An Empirical Overview of Tourism Industry," MPRA Paper 107661, University Library of Munich, Germany.
    11. Martina Bosone & Francesca Nocca, 2022. "Human Circular Tourism as the Tourism of Tomorrow: The Role of Travellers in Achieving a More Sustainable and Circular Tourism," Sustainability, MDPI, vol. 14(19), pages 1-35, September.
    12. Salinas Fernández, José Antonio & Guaita Martínez, José Manuel & Martín Martín, José María, 2022. "An analysis of the competitiveness of the tourism industry in a context of economic recovery following the COVID19 pandemic," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    13. Michal Hrivnák & Peter Moritz & Marcela Chreneková, 2021. "What Kept the Boat Afloat? Sustainability of Employment in Knowledge-Intensive Sectors Due to Government Measures during COVID-19 Pandemic," Sustainability, MDPI, vol. 13(15), pages 1-21, July.
    14. Alba Viana-Lora & Marta Gemma Nel-lo-Andreu, 2022. "Bibliometric analysis of trends in COVID-19 and tourism," Palgrave Communications, Palgrave Macmillan, vol. 9(1), pages 1-8, December.
    15. Segarra-Blasco, Agustí & Teruel, Mercedes & Cattaruzzo, Sebastiano, 2021. "The economic reaction to non-pharmaceutical interventions during Covid-19," Economic Analysis and Policy, Elsevier, vol. 72(C), pages 592-608.
    16. Monika Małgorzata Wojcieszak-Zbierska & Anna Jęczmyk & Jan Zawadka & Jarosław Uglis, 2020. "Agritourism in the Era of the Coronavirus (COVID-19): A Rapid Assessment from Poland," Agriculture, MDPI, vol. 10(9), pages 1-19, September.
    17. Gabriella Andrade & Holly Itoga & Cathrine Linnes & Jerome Agrusa & Joseph Lema, 2021. "The Economic Sustainability of Culture in Hawai’i: Tourists’ Willingness to Pay for Hawaiian Cultural Experiences," JRFM, MDPI, vol. 14(9), pages 1-25, September.
    18. Marina Sheresheva & Marina Efremova & Lilia Valitova & Anna Polukhina & Georgy Laptev, 2021. "Russian Tourism Enterprises’ Marketing Innovations to Meet the COVID-19 Challenges," Sustainability, MDPI, vol. 13(7), pages 1-17, March.
    19. Sanghyun Lee & Sounman Hong & Bong Gyou Lee, 2023. "Is There a Right Way to Lay Off Employees in Times of Crisis?: The Role of Organizational Justice in the Case of Airbnb," Sustainability, MDPI, vol. 15(5), pages 1-16, March.
    20. Ketan Bhatt & Claudia Seabra & Sunil Kumar Kabia & Kumar Ashutosh & Amit Gangotia, 2022. "COVID Crisis and Tourism Sustainability: An Insightful Bibliometric Analysis," Sustainability, MDPI, vol. 14(19), pages 1-23, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jecomi:v:9:y:2021:i:4:p:172-:d:673212. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.